Coordination of export credit support agreed to help boost trade flows

24/04/2009 - Thirty-five countries have agreed to co-ordinate export credit support to help boost international trade and investment during the economic crisis. The OECD will host regular meetings to exchange information and monitor progress.

In a statement issued following a meeting of the OECD’s Working Party on Export Credits on 23 April 2009, these governments welcomed the commitment by the G20 nations to provide at least $250 billion over the next two years to support trade finance through export credit and investment agencies. The governments of Brazil, China, Estonia, Indonesia, Israel, Romania and Slovenia which are not members of the OECD also signed the statement. Other countries may join the agreement at a later stage.

The Secretary-General, Mr. Angel Gurría, celebrated the fact that the Council of the OECD unanimously welcomed the agreement and expressed his satisfaction that the OECD is supporting the G20 effort in this area. The OECD will provide a forum to exchange information among the participating governments and institutions on implementing the G20 trade finance initiative as well as on developments in official export credits for capital goods and large infrastructure projects.

The statement was also signed by a number of international organisations - the WTO, IMF, World Bank, Multilateral Investment Guarantee Agency and IFC.

Trade finance and export credits have dried up in some markets due to the global financial crisis. The absence or excessive cost of export financing has become one of the identified obstacles to the recovery of trade flows.